Assume the following pension data for year 2019:Service cost $105,000Contribution $90,000Actual return $70,000Benefits $40,000Plan assets 1/1/19 $700,000PBO 1/1/19 $810,000Interest rate 10%Compute pension expense, PBO 12/31/19 and PA 12/31/19.Prepare all journal entries.Show all computations.I recommend using a pension worksheet, but you can do it without one.

Computation of Pension Expenses Service Cost $105,000 Interest Expenses (81,000- 70,000)…

Answered: Assume the following pension data for…

Assume the following pension data for year 2019: Service cost $105,000 Contribution $90,000 Actual return $70,000 Benefits $40,000 Plan assets 1/1/19 $700,000 PBO 1/1/19 $810,000 Interest rate 10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

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Assume the following pension data for year 2019:
Service cost $105,000
Contribution $90,000
Actual return $70,000
Benefits $40,000
Plan assets 1/1/19 $700,000
PBO 1/1/19 $810,000
Interest rate 10%
Compute pension expense, PBO 12/31/19 and PA 12/31/19.
Prepare all journal entries.
Show all computations.
I recommend using a pension worksheet, but you can do it without one.

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